PMQs live blog | 22 February 2012
PMQs 22 February
Politics
Read about the latest UK political news, views and analysis.
Wednesday
A taxing problem for George Osborne
Today’s FT reports that additional council tax bands are being considered as part of the Budget process. But there are several problems with introducing new council tax bands. First, this would require a wider revaluation, something that the coalition has ruled out explicitly and that would almost certainly drive up council tax for most people. A revaluation, as a parliamentary question from George Osborne’s former chief of staff Matt Hancock established, would cost around £200 million. It would also take two to three years to complete, meaning revenues from any new band wouldn’t start accruing until either very close to, or even after, the next election. Finally, higher
Tuesday
Nick Clegg’s NHS squeeze continues
As I said last week, Nick Clegg is in a tricky position when it comes to this Health Bill. Thanks to the concessions that he secured and welcomed last year, he can’t now just slander it outright. But thanks to the concerns of his own party, he will also be reluctant to endorse it in full. The result is the sort of ambiguous performance that the Deputy Prime Minister put in on ITV’s Daybreak show this morning. He did get stuck into Labour for their ‘outrageous’ misrepresentation of the reforms. But when it came to actually supporting the Bill, it seemed to me that he used generalisations — such as,
Darling: This is a Greek Versailles Treaty
Alistair Darling’s suggestion that income tax might be devolved (entirely!) to Scotland as part of a new post-referendum “settlement” was, understandably, the headline part of his Scotland on Sunday interview at the weekend. But his views on the Greek crisis were even more candid: His assessment of the Greek crisis is astonishingly frank. “The policy they [European leaders] are pursuing towards Greece is sheer lunacy. Nobody actually believes it will work privately, if you speak to people.” Even if everything worked, he notes that Greece would still have debts worth 120 per cent of its national income. “It will still leave the country so indebted and so crippled that it
The Lib Dems step up their push for £10,000
Set your TiVos. At 6.55 tomorrow evening, BBC1 will air the Liberal Democrats’ latest party political broadcast. For those of you who can’t wait, here’s a sneak preview: In the video, Nick Clegg describes his proposed increase in the income tax personal allowance as ‘a £700 tax cut for ordinary working people — that’s an extra £60 in your wages every month’. I’ve remarked before on the similarities in both rhetoric and policies between the Lib Dems and Barack Obama, but Clegg’s ‘£60 a month’ pitch is as close as you get to the way Obama sells his payroll tax cut extension as ‘about $40 in every paycheck’. We can now surely
The brass neck of Julian Assange
On 1 March, the Old Vic theatre in London is hosting the première of Europe’s Last Dictator — a film documenting torture and state-sponsored murder and kidnap in Aleksandr Lukashenko’s Belarus. I don’t know if it looks at the brilliantly subversive Belarus Free Theatre, which has been at the forefront of the dissident movement, but I have been heartened to see British actors — Ian McKellen, Jude Law, Sienna Miller, Samuel West — responding to appeals for solidarity from their fellow performers in Belarus by taking up the cause of the opposition. Given this admirable record, it is no surprise to learn that Joanna Lumley will be co-hosting the evening
Osborne accidentally makes the case for more savings
Rhetoric aside, what’s the difference between left and right in British politics? You won’t catch either party quantifying it, because the answer embarrasses both. The ever-cautious George Osborne is cutting just 0.6 percentage points a year more from government departments than Labour planned to (see table, above). The great joke is that the difference between the two parties is actually within the margin of error. Government is a gargantuan machine that just can’t be controlled to that degree of precision: a billion quid is, to Whitehall, a rounding error. Today’s public finances have demonstrated that. The UK government had actually intended to borrow around £102 billion at this stage
Greece saved at last? Nope…
Greece sorta defaulted last night. That’s what you need to remember when reading of Greek Prime Minister Lucas Papademos’s ‘happiness’ at the €130 billion deal reached by eurozone finance ministers in the early hours. Sure, the country will now be able to pay off its creditors when various loans mature on 20 March. But the concurrent ‘voluntary’ haircut of 53.5 per cent for private bondholders will still be seen as a ‘restricted default’ by credit rating agencies. And it could feasibly get worse if those private bondholders decide not to play along and instead trigger a credit event, either manageable or messy. The question hovering over Greece is now, really,
Monday
The implications of today’s border security report
Today brought closure of a kind to last year’s border fiasco (which I covered for Coffee House here and here), with the publication of the report by the Chief Inspector of the UK Border Agency, John Vine. On first reading, there is no ‘smoking gun’ which would trigger a ministerial resignation. The report does find that, in early 2011, the immigration minister Damian Green had authorised the relaxation of one of the checks at the centre of the controversy: ‘Secure ID’, which verifies the fingerprints of foreign travellers with visas. But the report also finds that Green’s authorisation should have been superseded by later instructions from the Home Secretary Theresa
The Tories desert Cable in the Commons
When a Secretary of State is in trouble, it is traditional that his governmental colleagues rally to his side. But as Vince Cable defended overruling the Business Select Committee’s objections to Les Ebdon, there was but one Tory Cabinet minister on the front bench. This despite Cable having rung round private offices in search of support, as Patrick Wintour reports. In total there were three Tories on the front bench for most of the statement, Cable’s junior minister Mark Prisk, the whip Mark Francois and the Leader of the House Sir George Young in his normal seat. The absence of Tory ministers combined with 13 hostile questions from Tory backbenchers
Miliband guarantees a return to Brown’s Big Idea for the NHS
It would be so much easier for Ed Miliband to attract headlines if he could shout in Andrew Lansley’s face. As it is, the Labour leader has had to make do with giving a speech today attacking the NHS reforms. Within the parameters of what he might say, it’s an okay effort. The predictable lines about ‘creeping privatisation’ are leavened by the admission that ‘the question is not reform or no reform. It is what type of reform.’ And he adds, by way of a cross-party sweetener, that he would ‘get round the table’ with David Cameron to discuss ‘the future of the NHS’. But the substance of the speech,
Just in case you missed them… | 20 February 2012
…here are some posts made on Spectator.co.uk over the weekend: Fraser Nelson reveals the cynicism behind Ed Balls’ call for tax cuts. James Forsyth says green energy must be price-competitive before we try to move everyone onto it, and thinks that, if Tory Ministers won’t get behind the NHS reforms, they can’t expect anybody else to. Jonathan Jones reports on William Hague’s warning of a new Cold War, and takes a look at the tax debate dominating the run-up to the Budget. On the Book Blog, Sir Peter Bottomley MP reveals a love of Unpopular Opinions. On the Arts Blog, Jerry Hayes reviews A Daughter’s Tale, the memoir of Winston Churchill’s youngest
If Cameron doesn’t talk about greater powers for England, Labour will
Action over Scotland is certainly producing a reaction in England. It’s not what you’d call an ‘equal and opposite reaction’ yet, but it’s there — and it’s crystallised by Tim Montgomerie’s article for the Guardian this morning. I’d recommend that you read it in full, but Tim’s basic point is that David Cameron could score a ‘triple crown of political victories’ by moving towards a more federal UK: ‘By offering to extend Scottish devolution he can be the Conservative leader who saves the union. By promising to balance Scottish devolution with a commitment to new arrangements for the government of England, he can radically improve his own party’s electoral prospects.
Sunday
The tax debate at the heart of the Budget
The run-up to last year’s Budget was all about fuel duty. This year it’ll be all about direct taxes. The Lib Dems are determined to put their manifesto pledge of raising the income tax personal allowance to £10,000 front and centre. They already managed to turn this promise into government policy in the Coalition Agreement, and last year’s Budget announced that the threshold would rise to £8,105 in April this year. But Nick Clegg’s made clear that he wants to go ‘further and faster’ on this. The Conservative response at the Treasury – according to today’s Telegraph – is simple: ‘how are they going to pay for it?’ Initially, Nick
Tory Ministers need to back the Health Bill
Tomorrow’s Downing Street meeting on the implementation of the health reforms is meant to send the message that the bill is definitely going ahead. Number 10 is keen to shore up the bill ahead of Liberal Democrat Spring Conference following the uncertainty caused by Rachel Sylvester’s column and Conservative Home’s call for the bill to be dropped. Indeed, I understand that at the Quad dinner on Monday night, Nick Clegg and Danny Alexander made the basic political point that the Liberal Democrats would feel absolved of the need to support the bill if any Tory minister came out publicly against it. But Tory ministers still need to muster more public
Saturday
The Spectator’s Notes | 18 February 2012
At the weekend, we stayed in Hillsborough Castle, official residence of the secretaries of state for Northern Ireland. There, in the 1770s, came Benjamin Franklin. He was said to have got on so badly with Lord Hillsborough, then acting Secretary of State for the Colonies, that he went home and declared the independence of the United States. There, in the 1990s, came numerous Peace Processors; and there, in April 2003, came George W. Bush and Tony Blair to discuss the Iraq they had just invaded. Things have got quieter since then, and our visit was intended as a tour of aspects of the province’s history kindly laid on by the
The green squeeze
Bjorn Lomborg’s article on why Germany is cutting back on its support for solar power is well worth reading and has clear implication for this country’s debate about energy policy. As Lomborg argues: ‘there is a fundamental problem with subsidizing inefficient green technology: it is affordable only if it is done in tiny, tokenistic amounts. Using the government’s generous subsidies, Germans installed 7.5 gigawatts of photovoltaic (PV) capacity last year, more than double what the government had deemed “acceptable.” It is estimated that this increase alone will lead to a $260 hike in the average consumer’s annual power bill.’ At a time when living standards are being squeezed, these increases
Bookbenchers: Sir Peter Bottomley MP
This week’s Bookbencher is Sir Peter Bottomley, MP for Worthing West. Not only does he have a magnificent eye for detail but he’s given some truly original answers. He’s managed to ignore Shakespeare, Chaucer and the Magna Carta in favour of da Vinci, and has also revealed a certain predilection for unpopular opinions and Dorothy L. Sayers. Which books are on your bedside table at the moment? A Bible: read in a year with daily sections of OT, NT, Psalm and Proverb Daughter of the Desert: The Extraordinary Life of Gertrude Bell by Georgina Howell Transition in Afghanistan 2011-2014, NATO Parliamentary Studies The Etymologicon, a circular stroll through the hidden connections
Hague’s ‘Cold War’ warning
William Hague has gazed into his Middle Eastern crystal ball and doesn’t like what he sees. In an interview in today’s Telegraph, he says of Iran: ‘It is a crisis coming down the tracks, because they are clearly continuing their nuclear weapons programme… If they obtain nuclear weapons capability, then I think other nations across the Middle East will want to develop nuclear weapons. And so, the most serious round of nuclear proliferation since nuclear weapons were invented would have begun with all the destabilising effects in the Middle East. And the threat of a new cold war in the Middle East without necessarily all the safety mechanisms… That would
Politics: Britain’s new gang of four
We have a new system of rule in Britain: Quad government. The coalition has not, as is often claimed, restored Cabinet government after 30 years of personality-charged premierships. But the Quad, which consists of the Prime Minister, the Deputy Prime Minister, the Chancellor and the Chief Secretary to the Treasury, plays the Cabinet’s traditional role. It decides all major matters of policy, inviting other ministers along where necessary. The Quad will determine the contents of the Budget. It has already met twice to discuss its priorities for the statement on 21 March. As its members will proudly tell you, the Quad doesn’t have its meetings in the Prime Minister’s den.